Yesterday Google came out with a full, sanctioned, comment on the possibility of Microsoft’s takeover of Yahoo!
The Microsoft bid has been interpreted by Google as hostile, and the tone of Steve Balmer’s email to Yahoo!’s board doesn’t suggest otherwise. In fact the email of January 31st refers to a letter that he received in February 2007 from Yahoo!’s chairman Roy Bostock, Bostock is reported to have said “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction”- so, has anything changed since then?
In a word “no”. Ballmer bangs on about the commercial benefits to both parties, but after a thorough read its clear that Microsoft would act with hostility should their softly-softly approach fall on deaf ears:
“Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal”- while this might be standard “bid” lingo its not the type of thing that would make you warm to the offer is it?…
…and Google agrees. David Drummond (Senior Vice President, Corporate Development and Chief Legal Officer- sounds like a busy guy) says that the bid is pretty much a rubbish idea. His objections are fundamental “It’s about preserving the underlying principles of the Internet: openness and innovation”.
Drummond questions the intention of the bid and doesn’t mince his words. He sees it as a covert attempt for Microsoft to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC. But then he would, wouldn’t he? With this situation Google could be facing the biggest threat to their seniority ever, and as this hasn’t happened before they are rightly nervous- they’ve no tried-and-tested strategy for dealing with such a threat. They do however have tried-and-tested methods for making the web accessible and open so perhaps they could work on their innovation capabilities and community support to deal with the threat- rather than make offers of “help” to Yahoo!
What transpires in the coming weeks may well reshape the web’s landscape considerably, or it may just reinforce our stereotypes that Microsoft are greedy, Google are generous, and Yahoo! might be in a bit of a pickle. My question is “what does Google’s offer to Yahoo! say about Google and their commitment to openness and innovation?”
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